ODSHERRED: A unanimous city council in Odsherred decided at an extraordinary meeting on Tuesday evening to support a reconstruction plan for Odsherred Varme, which is expected to end with both the municipality and Nordea having to wave goodbye to part of their receivables from the utility company.
Odsherred Varme is part of Odsherred Forsyning, and both companies are under reconstruction after they were unable to pay their bills after a failed district heating project.
The two largest creditors in Odsherred Varme are Nordea and Kommunekredit, and since Kommunekredit's loans are guaranteed by the municipality, Kommunekredit has asked for the city council's position on a reconstruction plan that the so-called reconstructors have presented.
It is expected that the final reconstruction proposal will involve a composition, where part of the debt is cancelled, and the repayment of the rest can be postponed. There is no suggestion yet of what the composition dividend will be, and thus how large a part of its receivables the municipality will have to wave goodbye to.
But the plan is sensible, the administration assesses, and that is why the politicians supported Kommunekredit voting for it and entering into dialogue about it.
Nordea sole creditor in Odsherred Forsyning
There is also a proposal for the reconstruction of Odsherred Forsyning. Here, however, the municipality is not in a financial bind, it is largely only Nordea that is the creditor here and therefore must approve the plan, which the bank is expected to do.
The administration has also reviewed this reconstruction plan and points out in particular that the company's assets are valued at around 18 million. DKK. This is not far-fetched when the company has signed a so-called self-obligation guarantee to the bank and is therefore liable for a loan of DKK 680 million to Odsherred Varme.
Odsherred Varme itself is estimated to have assets of around DKK 588 million, primarily in the form of facilities such as pipes and buildings, while its liabilities are almost DKK 1.3 billion.
Must pay for legal examination
Earlier Tuesday, the finance committee held a meeting, and in addition to the reconstruction plan, the committee also discussed the legal examination of Odsherred Forsyning and the entire process leading up to the financial morass, which the city council had previously agreed to.
The expectation was that Odsherred Forsyning would pay for the legal examination, but after the company went under reconstruction, the two reconstructors have announced that the company will only pay for some of the planned items. This applies, among other things, to mixing of funds in the group and the management's possible liability.
The municipality must pay for other items itself, and the committee recommends that the city council accept it at the next meeting.
It is not yet known what the exact price will be, but the study will cost 1.5 million. DKK. In addition, advice or legal action may later be taken, which may become relevant in continuation of the study.
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
